4. Yamashita Inc. accumulated the following cost information for its two products, A and B PRODUCT A PRODUCT B Units produced 1,000 2,000 5,000 Total direct labor hours 20,000 Set-up cost per batch Batch size P 1,000 P 2,000 100 50 Total set-up cost incurred Direct labor hour per unit P20,000 P40,000 2 1 A traditional costing system would allocate setup costs on the basis of direct labor hours. An ABC system would trace costs by spreading the cost per batch over the units in a batch. What is the setup cost per unit of Product A under each costing system? Traditional Costing P 4.80 P 2.40 P 40 P 4.80 АВС P 10 P 10 а. b. c. P 200 d. P 20

4. Yamashita Inc. accumulated the following cost information for its two products, A and B PRODUCT A PRODUCT B Units produced 1,000 2,000 5,000 Total direct labor hours 20,000 Set-up cost per batch Batch size P 1,000 P 2,000 100 50 Total set-up cost incurred Direct labor hour per unit P20,000 P40,000 2 1 A traditional costing system would allocate setup costs on the basis of direct labor hours. An ABC system would trace costs by spreading the cost per batch over the units in a batch. What is the setup cost per unit of Product A under each costing system? Traditional Costing P 4.80 P 2.40 P 40 P 4.80 АВС P 10 P 10 а. b. c. P 200 d. P 20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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